> For the complete documentation index, see [llms.txt](https://limelight-1.gitbook.io/limelight-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limelight-1.gitbook.io/limelight-docs/the-basics/how-to-earn-lp.md).
# How to Earn LP
Every trade you make on Limelight earns you **LP (Limelight Points)**. At the end of each month, a pool of real fees is divided among all point holders — proportional to how many points they earned. Trade more, earn more.
## What Are LP?
LP are a **non-transferable, off-chain reward-accounting unit** inside Limelight. They track your contribution to platform activity and determine your share of the monthly **Points Reward Pool**.
They're not a token. You can't send them, sell them, or use them outside of Limelight. Their sole function is to determine your proportional share of the monthly distribution.
## How You Earn Points
### Trading (The Main Engine)
For every **$1** of mainnet trading volume, you earn **1 LP**. No cap, no limit.
| You Trade | LP Earned |
| --------- | --------- |
| $100 | 100 LP |
| $1,000 | 1,000 LP |
| $10,000 | 10,000 LP |
This is the core engine. For active users, trading should represent the large majority of total LP earned.
> Testnet volume counts toward the [Limelight Catalyst](/limelight-docs/for-creators/limelight-catalyst.md) Trade Challenge, but does **not** earn LP. Only mainnet activity produces LP.
### Boosted Markets (2×)
Certain Featured Markets designated by the protocol earn **2× LP** per dollar of volume.
* Normal market: $100 in volume → 100 LP
* Boosted market: $100 in volume → 200 LP
### Market Creation Rewards
When you create a market and seed it with initial liquidity, you earn LP equal to the seed amount. If your market is Boosted, creation LP is doubled (2×).
| Seed Liquidity | LP Earned |
| -------------- | ---------- |
| $100 (minimum) | 100 LP |
| $2,000 | 2,000 LP |
| $100,000+ | 100,000 LP |
### Resolution Rewards
Apply to both automated outcomes and user-submitted disputes during the dispute window.
| Outcome | LP | Purpose |
| -------------------- | ------- | ---------------------------------------------------------------- |
| Correct resolution | +100 LP | Incentivizes accurate resolution (including successful disputes) |
| Incorrect resolution | −500 LP | Strong deterrent against wrong or malicious resolution |
See [Market Lifecycle & Disputes](/limelight-docs/knowledge-base/market-lifecycle-and-disputes.md).
### Daily Check-In Streak
| Action | Points |
| -------------- | ------------- |
| Daily check-in | +1 LP per day |
| 7-day streak | +10 LP bonus |
| 14-day streak | +25 LP bonus |
| 30-day streak | +50 LP bonus |
### Referral Bonuses
| Tier | Bonus |
| ----------------------------- | ----------------------- |
| Tier 1 (you invited them) | +10% of their LP |
| Tier 2 (they invited someone) | +1% of that person's LP |
| Tier 3 (one more level) | +0.1% |
See [Referral Program](/limelight-docs/the-basics/referral-program.md).
### Quests *(launching in phases)*
The quest system layers guided LP rewards on top of the core trading engine. See [Rewards](/limelight-docs/the-basics/rewards.md) for the full overview.
### All LP Sources at a Glance
| Source | LP Rate | Notes |
| --------------------- | --------------- | ---------------------------------- |
| Trading volume | 1 LP per $1 | Core engine. No cap. |
| Boosted markets | 2× LP | Same fee, double LP. Limited-time. |
| Market creation | = seed $ amount | $100 seed = 100 LP |
| Correct resolution | +100 LP | One-time per resolution |
| Wrong resolution | −500 LP | Asymmetric penalty |
| Daily check-in streak | +1 LP/day | Milestones at 7/14/30 days |
| Referral bonus | 10% / 1% / 0.1% | 3-tier, minted on top |
| Quest completion | +2 to +30 LP | Daily, weekly, and special quests |
## Monthly Epochs: How the Payout Works
Limelight operates on monthly epochs. During the month, every trade earns points and the **Points Reward Pool** (funded by 0.125% of all trading volume) grows.
**At month end:**
1. **Snapshot** — total LP and Points Reward Pool are frozen.
2. **Calculate** — your share = your LP ÷ total LP.
3. **Distribute** — your reward = your share × Points Reward Pool.
4. **Credit** — funds added to your balance.
5. **Reset** — new epoch. LP returns to zero. Lifetime stats tracked separately.
### Worked Example
| | Amount |
| ------------------------------------- | ------------- |
| Total platform volume | $10,000,000 |
| Points Reward Pool (0.125% of volume) | $12,500 |
| Total LP earned by all users | 10,000,000 LP |
| Your LP this month | 200,000 LP |
Your share: 200,000 ÷ 10,000,000 = **2%**. Your reward: 2% × $12,500 = **$250**.
## FAQ
Do my points carry over between months?
No. Points reset at the start of each epoch. Lifetime totals are tracked separately for badges.
Is there a cap on points?
No cap. The more you trade, the more you earn.
Can I game the system by wash trading?
Each round-trip costs real fees (1% + creator fee) with no guarantee of earning them back. The cost of faking volume exceeds the reward.
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